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Scottish retail sales in ‘doldrums’, figures show

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Scottish retail sales remained “stuck in the doldrums” last month, latest figures have shown.

Data from the Scottish Retail Consortium (SRC) KPMG Scottish retail sales monitor showed that total sales in Scotland decreased by 0.5% last month compared with September 2023, when they had grown 6.1%.

This was above the three-month average decrease of 0.6% and below the 12-month average growth of 0.4%.

Adjusted for inflation, there was a year-on-year increase of 0.1%.

On a like-for-like basis, Scottish sales decreased by 0.3% compared with September 2023, when they had increased by 5.5%.

This is above the three-month average decrease of 0.4% and below the 12-month average growth of 0.3%.

Retailers will be looking to the Chancellor’s Budget later this month with hopes that there will be some optimism to help bolster consumer confidence ahead of the crucial Christmas trading period

Ewan MacDonald Russell, Scottish Retail Consortium

SRC deputy head Ewan MacDonald Russell said: “September brought a little stability to Scottish retail sales after a summer of falling sales.

“Sales rose by a microscopic 0.1% in real terms with consumers returning to the shops after a summer packed with events and experiences.

“Fashion and footwear had a better month as the changeable weather encouraged shoppers to refresh autumnal wardrobes.

“The figures were also impacted by falling prices as competition between retailers improved the options for consumers.

“There also remain supply chain challenges due to international instability which is adding both time and cost to deliveries. Grocery sales fell once again and for a fourth successive month.

“Whilst these figures are an improvement on August, the truth is sales remain stuck in the doldrums.

“Retailers will be looking to the Chancellor’s Budget later this month with hopes that there will be some optimism to help bolster consumer confidence ahead of the crucial Christmas trading period.”

He said retailers will also be hoping there are not any “expensive surprises” for businesses “already weighed down by costly businesses rates and a slew of regulatory initiatives”.

The figures, which cover the period from August 25 to September 28 this year, showed that total food sales decreased by 0.7% versus September 2023, when they had increased by 9.2%.

September this year was below the three-month average decrease of 0.5% and below the 12-month average growth of 2.3%.

Total non-food sales decreased by 0.3% in September compared with September 2023, when they had increased by 3.5%.

This was above the three-month average decrease of 0.8% and 12-month decrease of 1.2%.

Adjusted for the estimated effect of online sales, total non-food sales increased by 1% in September versus September 2023, when they had increased by 1.9%.

This was above the three-month average decline of 0.2% and 12-month average decline of 1.8%.

Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: “September saw modest, but welcome, sales growth for retailers.

“Children’s clothing, footwear and accessories saw a boost from the start of the school year, with household budgets feeling slightly less constrained for some parents compared to last year.

“With energy prices having again risen, all eyes now turn to the budget and what impact that will have on household discretionary spending in the final quarter of the year.”